Excise Tax on High-Cost Employer-Sponsored Health Coverage

• Posted on July 6, 2010
• XML
• Questions?
• Share This
• Printable PDF

Long Island CPA Firm Offering Tax and Financial Advice

Beginning in tax year 2018, there will be a 40% nondeductible excise tax on insurance companies and plan administrators for any health coverage plan where the premiums exceed the following amounts:
                            
Single Coverage:  $10,200
Single Coverage, high-risk employment or retired age 55 and older:  $11,850  
Family coverage:  $27,500
Family coverage high-risk employment or retired age 55 and older:  $30,950

The tax would apply to self-insured plans and plans sold in the group market, but not to plans sold in the individual market (except for coverage eligible for the deduction for self-employed individuals). Stand-alone dental and vision plans would be disregarded in applying the tax. The dollar amount thresholds may be later adjusted for inflation.